Maruti hikes prices

They cheered the 150 pc exemption on in-house R&D, but an excise duty hike for steel and the 2 pc education cess dampened spirits in the auto industry. Leading player Maruti Udyog immediately raised prices. ‘‘Local players Tata Motors and Mahindra & Mahindra would gain a lot,” said K.K. Swamy, deputy managing director, Toyota Motors India. ‘‘Many, including two-wheeler players, are into heavy R&D, and the exemption is the icing on the cake. Toyota is still not into R&D here, but we’re studying our moves.’’ BVR Subbu, president, Hyundai Motor India added: ‘‘We set up an R&D facility recently, and I believe other auto majors could now be encouraged to do the same. It will translate into a more competitive sector at the global level.’’ ACMA said the exemption would help domestic R&D efforts, but the rising steel duties could force prices up.